ChinaEconTalk: How Huawei Became a Smartphone Giant, Make your Chinese Resume Sparkle

In the past two months I’ve put out eight ChinaEconTalk episodes, including ones on Huawei risks, a left-wing take on the future of US-China relations, a history of the Great Firewall, and the Chinese aviation industry.

Also a quick personal update. This Monday I’ll be starting work at Kuaishou, a Chinese short video/livestreaming company and Bytedance competitor, in their strategy department. Here are a few English language articles on the firm.

The History of Huawei Smartphones: How ‘Square’ Managers Succeeded

手机往事:一个硬核直男的崛起故事, May 9, 2019

How does an unassuming back-end hardware maker develop into a global phone giant? According to this pseudonymously published longform story on the Fantong Dai Laoban (Fat Boss Dai) WeChat channel, it takes farsighted executives willing to challenge their boss, “no bullshit” leaders, and huge investments in R&D.

The article traces the influence of machismo for good and for ill, describing the company’s key figures with the hard-to-translate term “hardcore straight guys” (硬核直男)—a phrase that evokes competitiveness, bullheaded literalism perhaps somewhere on the spectrum, and indifference to the aesthetic—a mix of the American stereotypes of the logical nerd and the competitive bro. In short, a square.

What follows is a summary, translated and often paraphrased for brevity. All research is the original author’s, whose byline translates to “False Zhang.”

At first, Huawei founder Ren Zhengfei was dead set against the idea. By 2002, he’d resisted incentives from the Ministry of Information to get into the phone business for years [see next week’s ChinaEconTalk episode about Shenzhen industrial policy for more on this topic]. Zhang opens by describing the perils of trying to persuade him: After hearing yet another lower-level manager’s pitch to make phones, Ren responded by screaming and banging on the meeting table:

Huawei doesn’t make phones! This is a done deal, so whoever is still discussing this topic is just bullshitting! And whoever keeps talking this shit is going to get themselves fired!

But this manager had already spent a month researching the topic and was convinced of its merit. “Although managers in Huawei rarely openly challenge Ren Zhengfei’s orders, they sometimes in surreptitious ways do what they can to change his mind.” So after another set of meetings, the junior managers finally got him to buy in.

And ante up he did. On a small revenue base, the Huawei CEO ordered his CFO to allocate a billion RMB to research. Initially, leadership was content with an OEM model, manufacturing low-end handsets without any Huawei branding and selling at low profit margins.

In 2008, Zhang writes, the phone business survived its hardest year. After the financial crisis, profits were down and Huawei’s debt levels grew worryingly high. In this context, Ren Zhengfei decided to shop around a 49% stake in Huawei’s mobile phone business to the likes of KKR, Blackstone and Bain Capital. Yet, since the final offers were only three-quarters of what Huawei was expecting, leadership decided to stick it out and reinvest themselves.

By this point, Zhang argues, Huawei was able to piggyback somewhat on Apple’s success. When manufacturing the iPhone, Apple sought to diversify its supply chain away from Taiwan and invested heavily in the mainland. The production of the iPhone largely in mainland China, he writes, created an industrial base with “mature technology, a complete supply chain, convenient logistics, cheap labor costs, and a huge consumer market” that Xiaomi and Huawei could build on for their own products.

Zhang identifies 2010 as the turning point when Huawei, more confident in the wake of market recovery, decided to shift from OEM products sold to businesses to creating top-of-the-line products marketable directly to consumers. Yet at first, under the leadership of Huawei company man Yu Chengdong—“a rough-skinned, full-of-steel straight guy”—its products failed to compete with the likes of Xiaomi and Samsung. Critically, its engineers were slow to adapt to making consumer-focused products.

[Huawei engineers] always like to talk technical specs with you and bowl you over with hardcore qualities. But when you take this sort of working style and bring it to the consumer space, it’s just like the style of one of these straight guys on Hupu [a bro-y male-dominated forum that covers NBA, streetwear and the like]. In the eyes of Huawei’s engineers, it has the best components and industrial parameters, so of course it should sell, right? But this is the same as when you’re talking to a girl and you just say, “I’ve got a car, a house, and money, and I don’t gamble or see prostitutes, so why on earth don’t you like me? Why? Why?”

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Yu Chengdong, a real Huawei man

Even though these first phones were duds on the market, Huawei made the critical decision to double down on research and development for its own chips and not resort to foreign-made critical components. Zhang credits this decision, expensive at the time, with allowing Huawei to create truly differentiated products and somewhat shielding it from the threat of US export bans.

To break through as a consumer brand, Huawei needed someone different: someone a little bohemian. Enter Liu Jiangfeng, who, though he joined Huawei back in 1996, calls himself an “unconventional Huawei man.” Zhang describes him “swilling a glass of red wine, cigar in hand, dazzling in a Maserati, a high-end speaker at home, quoing Milan Kundera and Sorescu … basically like Fitzgerald’s Gatsby, the kind of guy completely out of place in Huawei.” He took charge of the Glory line of phones and produced the first Huawei product to win consumers’ hearts. The Glory line was a stunning success, bringing in $3 billion in revenue on 20 million phones sold.

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Liu Jiangfeng, reader of books

Despite this remarkable performance, Liu resigned from the company in 2015, fed up with the culture. Zhang writes that ultimately “the essence of Huawei phones is the same as the whole company, that of ‘hardcore straight guys,’ and if you’re not that type of person, it’s hard to lead well inside.”

Zhang concludes that “hardcore straight guy” culture is the heart of Huawei—the source of both its victories and its setbacks.

Why did Huawei emerge as such a force to be reckoned with?

Ren Zhengfei recently gave this answer at a strategic retreat: “Orient strategically in more or less the right direction, and make sure the organization is full of vigor.” Huawei has not wavered from its dedication to communications as its main channel, subsequently moving into mobile phones and chip-making. Ren Zhengfei and Huawei have made many mistakes, but they understood the essence of the business, remained open-minded towards the suggestions of young talents, were unafraid to experiment and open to rapid self-correction.

At the same time, while we’re all singing Huawei’s praises, the hardships behind its rise were suffered by Huawei employees and family: the overtime work culture, the wolf culture of ‘endure, adapt, compete’ [gun, ren, hen—the title of a career allegory], hearing about the death of your parents over a phone call at the airport, crumbling family life, a deteriorating body, and countless days and nights of loneliness and feeling helpless.

There’s no such thing as talent, you can’t rely on resources, there’s no other way but to work hard, struggle bitterly, so much that you exhaust yourself to overcome the gap between yourself and your competitors. There’s just no alternative. Isn’t that the story of our nation’s last 40 years?

How to package a beige life into a dope resume


Written by Bi Dao 毕导 in his own WeChat platform 毕导 (WeChat ID: bxt_thu). March 22, 2019

In China, the first few months after Chinese New Year are prime job-hunting season. After employees receive their Chinese New Year bonuses (amounting sometimes to over four months’ salary), many hope to tiaocao 跳槽, e.g., jump to greener grass.

Particularly nowadays as massive tech layoffs are swelling the ranks of job-seekers, those with less experience are finding it hard to keep up. This article is a satirical take on fixing up your resume for new graduates so that your “pale and wan life” can seem “clean and bright” to a skeptical HR.

Almost all Chinese resumes feature professional photos of the applicant. While some may find it hard to find a suitable one, this ‘Complete Guide’ makes clear that any serious applicant should add a photo. Why? If you don’t, you leave HR with “infinite room to imagine” just how ugly you could possibly be.

So you’re adding a photo. Now what kind of photo should it be? A standard one like the one on the left below would be fine for an SOE. However, if you’re considering working for an internet company, perhaps a photo of you doing some lively activity to demonstrate your fitness for overtime would be more fitting.

If you’re a programmer, don’t just take a straight-on passport photo. Instead, make sure to show off your bald spots so that they know just how dedicated you are to the job. Who knows, even if you’re just applying for a regular engineering position, perhaps after seeing a seriously bald head HR might consider you for a directorship.

Matching the company’s corporate culture is important. Huawei’s famous wolf culture, in which employees are encouraged to compete with each other at all costs, has gotten it in trouble internationally. But to catch HR’s attention if you’re applying to Huawei, maybe you should talk about the time you went to Inner Mongolia to catch a wolf!

Now, education. China’s working environment, like America’s, places a huge value on degrees from brand name schools. If you’ve graduated from Tsinghua or Beida, just say it and “waltz right into your interview.” But if you’re below the top tier, then you can get creative. But beware: if you say you graduated from a “top 10” school, HR will probably think you’re from the tenth best.

Perhaps you didn’t have a great class rank? Not a problem. Just be sure to define your achievements narrowly enough to make yourself look good. For instance, if you’re the only guy in your art major then just say you were the “top male student.” In sum,  the article advises that “the Chinese language contains multitudes, so it’s important to use it flexibly to your own ends.”

In the wechat comments section, one reader gave their advice for burnishing investing credentials. "Let me show you how to frame extracurricular experiences. You should write: Once I invested a famous O2O company in their seed stage. In other words, I once ordered delivery on Ele [饿了么, the Alibaba-backed food delivery giant]."